Took possession of three unit apartment today. Top Priorities?

Question

I just left my closing and now I own an occupied three unit apartment building. The building is in good repair. I have only met one of the tenants. I plan on self managing. What are some of the most important first steps I should take? What should I communicate to the tenants? How should I communicate? What should be my top priorities? I appreciate any suggestions and advice.

Mike Mocek · Answer

Hello @Carini Rochester Congratulations on your acquisition, how exciting is that! The very first thing I would do is confirm utilities and make sure that everything that needs to be transferred, is. Then, I would introduce myself to all of the tenants, face to face, and create a relationship with them. Ask them if there are any major outstanding repairs (Plumbing, Electrical, Safety). After you have done a face-to-face, I would give a "Welcome Packet" which can just be a folder with how to communicate with you, pay rent, etc, I also will include a small gift, like a gift card, bottle of wine, etc (You will see what they like with your face to face conversation. I am all about building strong relationships in my business whether it be colleagues, clients, tenants, etc, I want my tenants and colleagues to be happy and know that I am here. Good luck and congratulations again!

Jill F. · Answer

@Carini Rochester Congratulations! I second @Nathan Gesner,

1) is to learn the rules for the state/city where you are operating.

2) if you didn't get contact info for all of your tenants, get contact info and then make contact with all of your tenants and tell them how to pay rent. Since we are so close to the first, I would make arrangements to collect in person this one month in order to buy time to set up a good process.

3) If you plan to grow your business, I really recommend springing for full featured property management software. We use Buildium but I'm considering renttechdirect. Having great software allows you to focus more on the bigger picture by giving you built in procedures for common tasks.

4) Make sure you have working keys for all your units and that all locks for a unit use the same key, then figure out a key management system. We like kwikset 816 control key smart locks. You have one landlord "master" key and one tenant key for each lock. When a tenant moves out we immediately rekey the tenant to our "hammer key" which all of our trades and cleaners and maintenance folks have a copy of-- the key is shaped like a hammer so they usually don't lose it or get it mixed up. It's super easy to rekey a kwikset smartkey lock. This saves us so much time and aggravation.

5) Find an HVAC company and a plumbing that are use to working with landlords and who will schedule directly with your tenants.

6) Get the bookkeeping done for your hud statements in whatever accounting/management system you select and keep up with the bookkeeping from the start.

I actually love text for dealing with tenants... you get instant communication and a written record of all agreements. But I still require problem tickets in my maintenance software for issues so that stuff doesn't fall between the cracks.

Nathan Gesner · Answer

Learn how to be a good Landlord, which includes learning the laws and preparing for the worst-case scenarios before they happen. Buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

Blake Hernandez · Answer

1st of all congratulations on your acquisition.

after that i always say, make sure you know how to turn off the water. Bonus points if you show your tenants how to turn it off in an emergency.

Carini Rochester · Answer

Thanks for all the replies @Mike Mocek @Eliott Elias

and @Nathan Gesner.

@Nathan Gesner I just ordered the NOLO book you recommended. Thanks for the help!

Drew Sygit · Answer

let them know how they can pay you, look for a new lease you can use. Set boundaries.

Theresa Harris · Answer

Hopefully you got their deposits and prorated rent. As it is the 29th, first and foremost you need to contact them and let them know how to pay the rent and who to pay it to.

Eliott Elias · Answer

Don't let them message you on your personal number, communicate via email. Get insurance, make sure you have all deposits. Be friendly, but don't be a second chance land lord. Tenants will walk all over you

Took possession of three unit apartment today. Top Priorities?

Took possession of three unit apartment today. Top Priorities?

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